Question: Please complete the following problems 3 and 4 1. 2. 3. 4 5 Check My Work (1 remaining) Click here to read the eBook: The

Please complete the following problems 3 and 4

1. 2. 3. 4 5 Check My Work (1 remaining) Click here to read the eBook: The Determinants of Market Interest Rates REAL RISK-FREE RATE You read in The Wall Street Journal that 30 day T-bills are currently yielding 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: 8. . Inflation premium 3.5% Liquidity premium 0.9% . Maturity risk premium-2.15% . Default risk premium-2.45% On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. Check My Work (1 remaining)

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